The Optimal Design For LG Commercial Bank's Compensation System

In recent years, it is getting very competitive in the financial industry. There is raising requirements on attracting and retaining a high-quality workforce for human resource management. As an important subsystem of the human resource management system, compensation management system communicates enterprise value orientation, the idea of that enterprise advocating and all kinds of behavior that enterprise not willing to see. Successful salary system can effectively motivate their enthusiasm and creativity, and provide constant power for enterprise's development. Improving the reform of commercial bank's salary system and constructing the salary incentive system that really meets the requirements of our state-owned commercial banks' human resource development strategy are very important for promoting business strategy development, and pushing rapid and sustainable development the of state-owned commercial banks.If only balanced by the characteristics of commercial banks, China's state-owned commercial banks are already similar in form to real commercial banks. However, their inner operation managing system is still in its infancy and needs a very long and tough way to go before they become modern commercial banks in essence. Currently, the domestic researches of the ownership reforms of state-owned commercial banks focus on corporation governance, business models, risk controlling, organizational structures, financial reconstruction and so on. There are more researches on reform of stockholding system, while researches of compensation management are relatively few, and the conclusions drawn by scholars differ. On 21st,2010, China Banking Regulatory Commission issued the commercial bank steady compensation supervisory guidelines "(by CBRC [2010] No.14). However, the regulatory approach for state-owned financial enterprises is still in the initial stage and not perfect.This paper mainly studies the LG commercial Banks in the circumstances of the stock reform, focusing on how to follow the requirements of modern commercial bank, design compensation system to meet business development strategy,constantly promote the labor productivity, and enhance the core competitiveness of the bank. It also uses the existing successful experience and practice of other commercial banks from home and abroad for reference, and makes comparison and analysis. In view of the main problems of LG commercial Banks salary incentive, this paper puts forward the optimization designing new ideas of compensation system of state-owned commercial banks.